EUR/USD technical analysis: 1.1220 is the level to defend for bulls

EUR/USD charted a bearish engulfing candle on Wednesday.
The bearish engulfing candle makes today’s close pivotal.
A break below 1.1220 will likely invite stronger selling pressure.

Omkar Godbole FXStreet Contributor

EUR/USD jumped to a three-week high of 1.1307 in the US trading hours on Wednesday only to fall all the way back to 1.1220 by daily close.

Essentially, the common currency created a bearish engulfing candle on Wednesday.

A break below 1.1220 would validate Wednesday’s bearish engulfing candle and open the doors to retest of the recent low of 1.1116.

On the higher side, a daily close above the 100-day moving average resistance at 1.1272 is needed to revive the bullish view put forward by Monday’s descending triangle breakout.

As of writing, the spot is trading at 1.1232, having failed to secure a daily close above the 100-day MA in the previous two trading days.

Daily chart

Trend: Bearish below 1.1220

Technical levels

EUR/USD

Overview
Today last price	1.1232
Today Daily Change	0.0012
Today Daily Change %	0.11
Today daily open	1.122

Trends
Daily SMA20	1.1189
Daily SMA50	1.121
Daily SMA100	1.1277
Daily SMA200	1.1372

Levels
Previous Daily High	1.1307
Previous Daily Low	1.122
Previous Weekly High	1.1218
Previous Weekly Low	1.1116
Previous Monthly High	1.1266
Previous Monthly Low	1.1107
Daily Fibonacci 38.2%	1.1253
Daily Fibonacci 61.8%	1.1274
Daily Pivot Point S1	1.119
Daily Pivot Point S2	1.1161
Daily Pivot Point S3	1.1103
Daily Pivot Point R1	1.1278
Daily Pivot Point R2	1.1336
Daily Pivot Point R3	1.1365

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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